August 20 is a good day for Huang Renxun. Nvidia, the chip and system design company, saw its net worth soar by more than $4 billion overnight thanks to a better-than-expected earnings call.
according to Bloomberg Billionaires IndexAs of Aug. 20, Huang’s fortune was $38.8 billion. By the end of the game on August 21, that number had risen to $42 billion.
Shares of the company surged more than 8% after the close, from $472.5 to $512.5 at the time of writing.
Mr Huang, who holds a 3.5 per cent stake in the company he co-founded, has seen his fortune balloon as a result.
Wall Street’s stock price surge is not without reason.
In its Second Quarter Earnings Update Nvidia reported that revenue from its data center business rose 171% to $10.3 billion for the fiscal year.
Nvidia has ridden the wave of technological advancement. During the COVID-19 pandemic, its share price soaredbecause its chips are needed to mine the digital currency, which has attracted a lot of interest during the global lockdown.
Now, the California-based company appears to be cashing in on the AI bubble, confirming that chips like the A100 and H100 — critical to services like ChatGPT — are driving the performance of its data center business.
callingChief Financial Officer Colette Kress also revealed that the company’s revenue guidance was well ahead of its own.
“We had a great quarter,” Kress said. “Second quarter revenue was a record $13.51 billion, up 88% quarter-over-quarter and 101% year-over-year, above our $11.0 billion forecast.”
optimistic outlook
The earnings call also indicated that the company showed no signs of slowing down.
Looking ahead to the third quarter, Kress said: “Demand for our AI data center platform is huge and broad, across industries and customers. Our demand visibility will continue into next year.
“Our supply will continue to increase in the coming quarters as we shorten cycle times and work with our supply partners to increase capacity.”
Any concerns that Nvidia’s suppliers couldn’t keep up were also addressed — Kress praised the company’s “outstanding” suppliers for being able to “increase capacity to support our needs.”
The bullish outlook shows Nvidia’s confidence in its ability to continue operating on the Nasdaq. Shares of Nvidia are up 229% so far this year and 529% over the past five years.
As such, it outpaces even the likes of Meta (135% year-to-date and 68.5% over the past five years), Amazon (58% and 42%, respectively) and Microsoft (36% and 201%, respectively).
If Nvidia keeps up its momentum, Jensen Huang may soon break into the top 25 of the Bloomberg rich list.Huang, currently ranked 29, needs a fortune of $45 billion to beat the luxury giant Alan Wertheimer Out of ranking.
call windfall
Huang is certainly not the first CEO or founder to see his personal fortunes grow from company earnings and announcements, and he won’t be the last.
In April, Bill Gates added $2 billion to his fortune after Microsoft Corp. used the term “artificial intelligence” about 50 times. Earnings Conference Call— According to data from JP Morgan counting— Emphasizes the drive for businesses to maintain leadership in the large-scale language model (LLM) competition.
Buoyed by Microsoft’s upbeat outlook, the company’s shares soared 9% in a matter of days, adding $174 billion to its market value.
The result of the rebound means billionaire philanthropist gatesHe owns about 1% of the company, holding 103 million shares, adding $2 billion to his fortune.
Likewise, Mark Zuckerberg, Meta CEO and its largest individual shareholderThrough a combination of his “Year of Efficiency” and making artificial intelligence a company priority, his fortune has increased by nearly $40 billion.
The Facebook founder, known for his $1-a-year salary, began teasing the company’s venture into artificial intelligence this year. Deployment hinted at end of January before the big announcement A new AI-focused project group was formed at the end of February.
Before the announcement in January, Zuckerberg’s fortune was $55.1 billion, Since the release of artificial intelligence in Februaryhis fortune grew from $63 billion to $102 billion.
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